Don't Change Your Mind On J.C. Penney
Summary
By S. Hasan Abid
These are heavy times for mall-based retailers as they continue to see weak consumer spending in apparel and core categories like handbags. For Q1 fiscal 2016, comp sales at Kohl's (NYSE:KSS), Nordstrom (JWM), J.C. Penney (NYSE:JCP) and Macy's (NYSE:M) fell ominously by 3.9%, 1.7%, 0.4% and 5.6%, respectively. Investors are worried this might be a sign of things to come and brick-and-mortar retailers might be put out of business by the e-commerce giant Amazon (NASDAQ:AMZN). Unsurprisingly, the stock market reflects all these sentiments. In the last 12 months, Amazon stock has gone up by a whopping 66.76%, while shares of all major companies in the department stores industry have fallen by more than 10%... CONTINUE READING
Expect Texas Instruments' Dividend To Keep Growing And Growing
Summary
By S. Hasan Abid
Ever since reaching a relative bottom in January this year, shares of Texas Instruments (TXN) have climbed up by ~19%. Currently, the stock price is sitting slightly above its 50-day EMA and 200-day EMA. Note that the 200-day EMA is languishing below both TXN's current price and the 50-day EMA, confirming that the stock is in an uptrend... CONTINUE READING
Summary
- I don't believe that brick-and-mortar retail has no future.
- One of the highlights of the earnings call last week for me was J.C.Penney's decision to add appliance showrooms in more than 500 of its locations.
- I believe this is a good time for the company to penetrate the home appliance market. Institutional investors are taking interest in J. C. Penney.
By S. Hasan Abid
These are heavy times for mall-based retailers as they continue to see weak consumer spending in apparel and core categories like handbags. For Q1 fiscal 2016, comp sales at Kohl's (NYSE:KSS), Nordstrom (JWM), J.C. Penney (NYSE:JCP) and Macy's (NYSE:M) fell ominously by 3.9%, 1.7%, 0.4% and 5.6%, respectively. Investors are worried this might be a sign of things to come and brick-and-mortar retailers might be put out of business by the e-commerce giant Amazon (NASDAQ:AMZN). Unsurprisingly, the stock market reflects all these sentiments. In the last 12 months, Amazon stock has gone up by a whopping 66.76%, while shares of all major companies in the department stores industry have fallen by more than 10%... CONTINUE READING
Expect Texas Instruments' Dividend To Keep Growing And Growing
Summary
- TXN is very attractive from a dividend yield perspective.
- I believe a year-over-year dividend growth rate of at least 20% can be sustained for many years.
- TXN's payout ratio is currently below 50%, so there is ample room for further dividend growth.
- TXN's outlook makes me reasonably confident about the company’s dividend capabilities.
By S. Hasan Abid
Ever since reaching a relative bottom in January this year, shares of Texas Instruments (TXN) have climbed up by ~19%. Currently, the stock price is sitting slightly above its 50-day EMA and 200-day EMA. Note that the 200-day EMA is languishing below both TXN's current price and the 50-day EMA, confirming that the stock is in an uptrend... CONTINUE READING
